The stockholders' equity of the Company at July 31st is presented below: Common stock, par value...
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The stockholders' equity of the Company at July 31st is presented below: Common stock, par value $20, authorized 400,000 shares; issued and outstanding 160,000 shares Paid-in capital in excess of par Retained earnings $3,200,000 160,000 650.000 $4,010,000 On August 1st, the board of directors of Howell declared a 15% stock dividend on common stock, to be distributed on September 15th. The market price of the Company's common stock was $70 on August 1st. What is the amount of the debit to- retained earnings as a result of the declaration and distribution of this stock dividend? The stockholders' equity of the Company at July 31st is presented below: Common stock, par value $20, authorized 400,000 shares; issued and outstanding 160,000 shares Paid-in capital in excess of par Retained earnings $3,200,000 160,000 650.000 $4,010,000 On August 1st, the board of directors of Howell declared a 15% stock dividend on common stock, to be distributed on September 15th. The market price of the Company's common stock was $70 on August 1st. What is the amount of the debit to- retained earnings as a result of the declaration and distribution of this stock dividend?
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A stock dividend is a distribution of additional shares of stock to existing shareholders in proport... View the full answer
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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